The Volume to market cap ratio describes a relationship between the volume and the price. The ratio comes from dividing 24-hour volume by market cap. Whenever there is a surge in the VM ratio above 1, a strong price change will also be observed within the upcoming days. The analysis below is done by plotting the VM ratio in Santiment.
Let’s look at the top gainers in various categories and their relation with the VM ratio.
Turbo coin
Source: Turbo VM ratio by Santiment
Turbo coin is trading near the value of $0.007149, with a drop of 20% in the last 24 hours and a gain of 362% in the last seven days. On March 1, 2024, the VM ratio of the TURBO jumped to 1.04; since then, it has gained from a low of $0.0008 to a high of $0.0013 in the next 15 days.
On May 25, the ratio surged to 1.125; within four days, the price surged by 200%.
DOG. GO.TO.THE.MOON
Source: VM Ratio by Santiment
DOG is one of the most popular coins in the Runes category. It is trading near $0.005, with a gain of 35% in the intraday session. Looking at the VM ratio of the DOG, the VM ratio observed a significant spike on May 21st, while the DOG price also surged 70%.
Meanwhile, the VM ratio recently spiked by 2X, while the price also gained by 35%.
PEPE
Source: PEPE VM by Santiment
PEPE has a market cap of $3.8 Billion and is ranked 20th on CMC. It is trading near $0.000015, with a 9% intraday drop. It has gained more than 116% last month.
On February 28th, the VM ratio of the PEPE coin surged to 1.08. Since then, the price has surged by more than 100% in the past 15 days. On May 15th, the VM ratio surged to 0.92; since then, the PEPE price has touched an all-time high.
Dogwifwhat
Source: VM ratio by Santiment
WIF has a market cap of $3.8 Billion and is ranked 29th in the CMC. It is trading near $3.81, with a gain of 5% in the intraday session. On February 28, 2024, the WIF-VM ratio surged to 1.04 when the price was $0.56.
Within 15 days, the WIF token price surged to $3.44, gaining over 200%. On May 14, the WIF price was $2.84, while the VM ratio climbed to 0.9. In the next 14 days, the price reached a high of $3.9.
Notcoin
Source: VM ratio by Santiment
Notcoin started as a viral telegram and has now reached new highs. It is trading near $0.008 with a drop of 9% in the intraday session and a gain of 65% in the last seven days.
On May 27th, the VM ratio of NOT reached 1.02 while the price was trading near $0.005. In the next two days, the NOT price surged by more than 40%, reaching a high of $0.0096.
BONK
Source: VM ratio by Santiment
BONK is the first dog-themed coin on Solana, with a market cap of $2.77 Billion. In the last 24 hours, the VM ratio of the token has remained around 0.4. On December 15, 2023, the VM ratio of BONK jumped to 1.29, accompanied by a price rise without delay.
In February 2024, the VM ratio jumped to 0.98, and the price surged by 20%. The rise in VM and price surge have caused no substantial delay in the BONK.
Starknet
Source: VM Ratio STRK By Santiment
Starknet is currently ranked 68th in the CMC with a VM ratio of 0.1. It has a market cap of $1.4 Billion and is trading near $1.23, with a loss of 47% in the last year. On March 5, 2024, the VM ratio surged to 0.91, where the price was $2.02.
Within a few days, the price went to $2.5. Since then, the VM ratio has not seen any spikes, and the price has also been in a downtrend.
Shiba Inu
Source: VM ratio SHIBA by Santiment
Shiba Inu is one of the biggest meme coins in the cryptoverse. It has a market cap of $16.19 Billion and is ranked 11th in the CMC. It has gained 212% in the last one year and 7% last week.
Looking at the VM ratio of SHIBA, one can observe that on March 5, 2024, VM reached 0.8 with a strong surge in price. Since then, the VM ratio has not surged, while the price remained constant for the past two months.
Conclusion
The Volume-to-market cap ratio can be a powerful tool for predicting a price rise. Looking at the analysis, a rally in the near future can be seen if the VM ratio rises above 0.8 while the price stays stagnant. In altcoins with a market cap of more than $300 Million, the VM rise is generally accompanied by a price rise.
Meanwhile, altcoins and meme coins, which have a market cap of between $10 and $300 Million, can observe the given effect of the VM ratio. One should not only rely on the VM ratio but also apply other indicators with caution before taking any trade.
